Despite the ongoing economic fragility resellers remain confident that customers will continue to spend on software.
Slow growth, coping with red tape and competition from offshore competitors are the problems that accounting and HR software specialist Pegasus found were causing worries for resellers.
But when it comes to getting the channel to predict the future there is more optimism with 74% expecting software expenditure to continue over the next twelve months.
One of the reasons why spending will keep going is because of the recognition by customers that technology offers a great deal of the answers to their problems of trying to innovate and remain competitive, with a third talking about the productivity benefits that users are looking for.
"At a time of austerity and ever tightening budgets, these survey findings are encouraging," said Stuart Anderson, sales and marketing director at Pegasus Software.
"In order to survive, businesses not only need to work harder but work smarter. It's no surprise therefore that technology and the cloud are expected to play a crucial role in supporting business through the tough times," he added.
A third of those resellers quizzed by Pegasus said that their customers would have a mixture on cloud and on-premise solutions in the next year.